INJ Price Struggles Below $15.6: Can It Break the Resistance?
INJ Price – Injective’s INJ has been on a sharp downtrend since reaching an all-time high (ATH) of $53 in March 2024. Since that peak, INJ has lost nearly 73% of its value and recently hit a 15-month low. Despite the extended downtrend, recent price movements suggest that there may be opportunities for INJ bulls to capitalize on short-term volatility.
Falling Wedge Pattern Indicates Potential Breakout
The altcoin has formed a falling wedge pattern on its daily chart, a pattern that typically hints at a potential bullish breakout. However, INJ’s price fell below its 20, 50, and 200-day EMAs, solidifying a bearish sentiment in the market. A death cross, which occurs when the 20-day EMA crosses below the 50-day EMA, further reinforced this downtrend.
Key Resistance and Support Levels to Watch
On February 3rd, INJ reached its 15-month low and briefly saw a series of green candles. Despite this, it struggled to break the $15.6 resistance, which lies near its 20-day EMA. If INJ can convincingly close above this level, it could trigger a stronger recovery toward the $18–$20 range. Conversely, a decline in broader market sentiment could see INJ test the $9.6–$10 support range.
RSI and Market Sentiment
The Relative Strength Index (RSI) for INJ remains below 50, indicating a lack of sufficient buying pressure. A decisive break above 50 would signal stronger momentum from buyers, potentially marking the start of a new uptrend.
INJ 3.0 Upgrade: A Deflationary Push
Injective has recently approved the INJ 3.0 upgrade, which aims to significantly reduce the circulating supply until Q1 2026. This deflationary strategy could eventually drive the value of INJ higher if demand picks up, especially if the broader market sentiment turns bullish.
Derivatives Volume and Optimism
The recent rise in INJ’s derivatives volume (up 18.63% to nearly $199 million) and the drop in Open Interest (-7.5% to around $105 million) suggests a potential for new longs if the market sentiment shifts positively. The Long/Short Ratio on Binance currently sits at 2.11, indicating short-term optimism from traders.
Conclusion: Awaiting Price Confirmation
As INJ tests the boundaries of its falling wedge and the 20-day EMA, traders should closely monitor these levels to determine whether a more sustainable upward trend is possible. The next few days will be crucial in confirming if INJ can break through key resistance points and regain bullish momentum.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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